Class Action Lawsuit Filed Against Crowdfunding Campaign

CrowdfundBeat News Wire

SAN FRANCISCO, CA – Kronenberger Rosenfeld, LLP, a San Francisco-based law firm, filed a class action lawsuit alleging that Coin, Inc. (“Coin”) received millions of dollars from consumers through a crowdfunding campaign for a product the company knew could never work as advertised. The lawsuit demands a trial by jury and seeks monetary damages against Coin for false advertising, misrepresentation and breach of contract.

The device at issue, called a “Coin,” is a thin, plastic, credit-card-shaped digital storage system with a magnetic stripe similar to that on a credit or debit card. It was advertised as a card consolidation device that would hold all of a consumer’s credit and debit card information in one card, so that a consumer would only need to carry “one card.”

class-action-lawsuit-300x193

The Coin device was marketed and sold to the public in what has been described as one of the most immediately successful crowdfunding campaigns ever. The campaign consisted of a single video entitled, “One Coin for All of Your Cards,” which promoted the Coin device as a solution for consumers who disliked carrying multiple cards in their wallets. The lawsuit alleges that the central message in Coin’s video was that the Coin device allowed consumers to carry just one card, and leave all their other cards at home. In addition to the video, this one card message was echoed in multiple press releases, other marketing efforts, and statements by the Coin CEO to the media.

The complaint alleges that after receiving their Coin devices, consumers discovered that the devices failed to work at terminals anywhere from 15 to more than 40 percent of the time, resulting in consumers having to carry their actual credit cards despite owning a Coin device.

The complaint also alleges that the Coin device’s security feature, which ostensibly alerted a consumer when their Coin device was out of range of their smart phone, failed to work properly as consumers were not alerted.

“Our complaint alleges that Coin knowingly marketed a product that it knew could not work the way they said it would,” said lead attorney Karl Kronenberger. “The complaint further alleges that Coin knew the statements in its crowdfunding video were false, but proceeded to line their pockets anyway, leaving consumers stuck with a device that does not work the way Coin promised.”

HEADLINE NEWS

The VergeDonald Trump's terrible crowdfunding site was a microcosm of his political careerThe VergeAnd from the beginning, the site had Trump's populist edge. Zanker boasted that “the reign of Kickstarter's Brooklyn hipsters is over,” referring to Kickstarter's New [...]

FortuneCrowdfunding: Women Better at Raising Money Than Men Are ...FortuneA new study has found that women are generally better than men at crowdfunding.Women are better at crowdfunding than men, shows study | The ...The IndependentWhy women join the crowd: Gender gap in bank lending, [...]

Wired.co.ukAfter budget cuts, Museums are crowdfunding to preserve historyWired.co.ukIn 2015, the Smithsonian National Air and Space Museum in Washington, D.C. launched its very first crowdfunding campaign to 'Reboot the Suit'. The idea was to raise much-need funds to conser [...]

Yahoo SportsCan crowdfunding save women's college hockey?Yahoo SportsOn Thursday, Million and the WCHA announced a crowdfunding initiative through RallyMe.com that allows supporters to make tax-deductible donations to the League. RallyMe is a crowdfunding site that's been ut [...]

ForbesCrowdfunding's Death Has Been Greatly Exaggerated - Creators Ship, Especially In ChinaForbesBased on recent media reports, it looks like crowdfunding is now in the "disillusionment" phase of the famous Gartner hype cycle, after peaking a few years back. I will arg [...]

How Women Trounce Men When Raising Seed Crowdfunding CapitalForbesMale entrepreneurs may account for the majority of business owners raising finance on crowdfunding platforms in the UK, but their female counterparts are far more likely to get the support they seek, new research shows. [...]

Grand Forks HeraldWomen's WCHA launches crowdfunding campaign to improve leagueGrand Forks HeraldThat mindset led the WCHA to announce a crowdfunding campaign Thursday, July 20, to help fund the league's expenses and lessen the financial burden of the seven remaining schools [...]

Gamasutra (blog)Gamasutra: Anti Danilevski's Blog - The problems of crowdfunding ...Gamasutra (blog)The Art & Business of Making Games. Video game industry news, developer blogs, and features delivered daily.and more » [...]

Woman turns to crowdfunding to publish cookbookOntario Argus ObserverVALE — While she was growing up in Vale, Allison Brewer says she learned how to cook for family and harvesting crews. Receiving many requests for written recipes combined with her passion for old-style cooking and ba [...]

CNBCAfrica.comCrowdfunding changing people's livesCNBCAfrica.comCNBC Africa's Tshepho Modiba is joined by Mosa Nyamande, Head of Operations and Technology at Khonology for a look at Crowdfunding, a method used to collect many small financial contributions by tapping into the [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |